A positive day for the USD yesterday with the greenback reaching EUR/USD 1.0735 and GBP/USD 1.2559 on global economic growth jitters. For the first time for some months the words “safe haven” were used in conjunction with the US Dollar. Sager observers have always regarded the USD as the global reserve currency par excellence.
A fillip to the oil price yesterday with WTI Nymex up $1.87 to $87.40 not on a sudden surge in global demand nor it transpired on the latest story suggesting the Chinese economy was about to flex its muscles. Instead of any of that it was due to the Kingdom of Saudi Arabia announcing that it would leave its daily reduction of 1 million barrels in place until the end of 2023.
A snag is developing on the EV front and its dependency on lithium for battery power: as soon as 2025 it is predicted by analysts at Fitch BMI at least that the world will move into the realm of demand outstripping supply. China’s voracious demand estimated at an average growth rate of 20.4% each year between 2023 and 2032. China as the world’s third largest producer of lithium can only manage a growth in supply of 6% each year. Present annual global production of lithium stands at 540,000 tonnes and demand is predicted to be 3 million tonnes by 2030. So before you ditch your gas guzzling clunker….
Rolls Royce Spectre
For a snip at GBP 382,000 you could be the owner of the new all electric Coupe called Spectre from Rolls Royce. If that sounds expensive-and it does- it is positively modest in comparison to the Rolls Royce La Rose Noire Droptail which as the world’s most expensive and exclusive car is available at the reassuringly expensive price of GBP 25 million. Alternatively you could instead buy 65 Spectres for the same price. Or rather a much greater number of more normal motors!
This day it was in 2011 that a Californian judge ruled against Madonna when she claimed that she had the sole right to Material Girl as a trading name for her clothing line because she had written a song of the same name back in 1985. Not so said the judge which meant that a Los Angeles retailer that had been using the name for its line of clothing could continue to do so.
Some boys kiss me Some boys hug me I think they’re ok If they don’t give me proper credit I just walk away
They can beg and they can plead But they can’t see the light (that’s right) ‘Cause the boy with the cold hard cash Is always Mister Right
‘Cause we are living in a material world And I am a material girl You know that we are living in a material world And I am a material girl
Some boys romance Some boys slow dance That’s all right with me If they can’t raise my interest then I Have to let them be
Some boys try and some boys lie but I don’t let them play (no way) Only boys who save their pennies Make my rainy day
‘Cause we’re living in a material world And I am a material girl You know that we are living in a material world And I am a material girl Living in a material world And I am a material girl You know that we are living in a material world And I am a material girl
Discussion and Analysis by Humphrey Percy, Chairman and Founder
The only haven The avoidance of a hard landing according to many projections of most economically significant geographies has undoubtedly moderated perceived financial risk. Back when recessions were forecasted and priced in as the base case to follow the interest rate hiking cycle, there was greater financial risk within the system. Despite a more sanguine […]
US Interest Rates Nothing much new over the weekend other than while sifting thought the tea leaves from last week, we found that not one but two members of the FOMC, the rate setting and policy making committee of the Federal Reserve, advocated US interest rates staying higher for longer to crush inflation. Within their […]
A revised 2024 The Dollar opens stronger this morning following the Federal Reserve’s decision last night. The decision confirmed interest rates were to stay on hold following this meeting. As we have highlighted following previous decisions, the forward guidance offered by the Chair Jay Powell was once again underwhelming. However, the Dollar’s bid this morning […]